Fullerton Fund Management will manage the insurer’s public-asset portfolio as part of the all-Singaporean deal, say sources familiar with the matter.
The Temasek subsidiary says the move is a natural part of portfolio review, but the closure underlines how hard it is to raise assets for global strategies run out of Asia.
Fullerton Fund Management and Nikko Asset Management Asia are aiming to launch equity and bond RQFII products after gaining approval from China's securities regulator.
History suggests bond returns will be poor for the next 20-40 years while equities will do okay, a conference hears. But panelists do not expect a rotation out of fixed income for up to three years.
The sovereign fund has applied for a new $700 million QFII quota as regulators reportedly consider raising the $1 billion cap.